Robert Kiyosaki on network marketing

Best selling business author Robert Kiyoasaki explains the what he learned from his rich dad and poor dad about personal finance.

His real dad was the head of education for the State of Hawaii, and his rich dad (his best friend’s father) didn’t finish school but ended up one of the richest men in Hawaii.

Kiyoasaki’s poor dad told him to go to school, get a job, etc. His rich dad told him if he did that he would never get rich.

The problem comes from the fact that financial education is not covered at school. The majority of people are financially illiterate.

One example is houses, poor people think of them as assets, but rich people look at them as liabilities.

How to get richer

Be smart with money by knowing how to make money with money.

The key is creating assets instead of liabilities.

There are four people in business:

Employees

Self Employed

Big Business

Investor

Most people who go to school are programmed to be employees or self employed people.

If you want to be a rich man you need to be in big business or investment.

Most small business owners can’t stop working, they own a job. If they stop working, they soon stop being paid.

Difference in taxes

Employees have to pay tax before they get paid. The harder you work as an employee, the more money the government take from you.

Doctors, lawyers, attorneys, and self employed people pay the highest percentage of taxes.

A lot of people think they are investors, but actually they are just giving their money to mutual funds, investment companies, etc.

The biggest tax breaks are for business owners who can make a lot more money, and pay less taxes legally.

True investors can make a lot of money and pay zero taxes legally, but you have to know what you are doing.

Passive residual income

The best way to get richer is to be in business, leveraging other people’s efforts, and put any excess money into investments that will keep on working for you.

Not everyone is suitable for running a business. People who must be right all the time, people who must be comfortable all the time, and people who want to please everyone shouldn’t consider being a business owner.

The best type of person to be a business owner are people must win.

It’s not how many times you get knocked down, but how many times you get back up again that makes you successful.

Winning and success take sacrifice.

Network marketing is the business for the 21st Century

Robert Kiyosaki has looked at many business models, and the one that stands out for him is network marketing.

Network marketing has very low start up costs, and enables people to move from being an employee or self employed, to being a business owner and investor.

It isn’t about making money, but helping people to help other people make money, so that they can become financially free.

Most corporations spend millions or billions on marketing. Network marketing companies on the other hand pay that money to their promoters or distributors, who advertise the products or services by word of mouth marketing.